Bookmark this page

share this article

follow Us

2016 remark: President Joko 'Jokowi' Widodo gives a remark after opening the IDX's first trading session of 2016 on Monday. (thejakartapost.com/ Wienda Parwitasari)

The Jakarta Composite Index (JCI) declined
by 1.5 percent to close at 4,525.91 points on the first trading day of 2016,
while the rupiah in the spot market depreciated by 95 points to 13,925 per US
dollar.

Universal Broker Indonesia head of
research Satrio Utomo said major Asian stock markets moved into negative
territory, which eventually pushed local traders to take a selling position on
Monday.

"During the trading hours, the
JCI strengthened, but then retreated to the negative area after Chinese stock
markets declined," he said as quoted by the Antara news agency on Monday.

However, he predicted, the JCI would
move back into positive territory in the mid-term, as foreign investors might want
to buy into the 'January Effect' phenomenon'with stocks prices typically
increasing in January more than in any other month.

Foreign investors scored a net buy
of Rp 84.2 billion (US$ 6 million). As many as 77 stocks increased, while 94 weakened
and 218 remained unchanged.

In regional markets, the Hang Seng
Index dropped 2.7 percent, the Nikkei Index weakened 3.1 percent, and the
Straits Times Index was down 1.6 percent.

Monex Investindo Futures head of
research Ariston Tjendra said the US dollar appreciated against most currencies
of the world, including the rupiah, due to different monetary policies among developed
countries.

"[The] US dollar index
strengthened, as the US central bank will raise its benchmark interest rate
further in 2016, while the European Central Bank [ECB] and Bank of Japan [BOJ]
chose to maintain their loose monetary policy," he said. (ags)